More than three-quarters of Australia's financial services providers had yet to apply for compulsory new operating licences just 12 months from the deadline, the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, said today.
He warned no extensions would be granted to late applicants.
"There can be no excuses for anyone not lodging their application well inside the deadline," Senator Campbell said. "If they miss the cut-off they will be out of business - it's as simple as that.
"So far, ASIC has granted only 355 licences. Another 1000 are in the system, but there's still approximately 6000 more to come.
"The Government will continue to work with industry to fine-tune the legislation, but no-one should use that as an excuse not to apply for a licence. The Government is determined the transition period to the new legislation will end in exactly one year (11 March 2004)."
The new Financial Services Reform Act (FSRA) brings all financial service providers under the same licensing, disclosure and conduct regime. Firms operating pre-FSRA must also convert to the new licensing system.
"The primary purpose of the legislation is to significantly raise the competency and supervisory standards of the industry and so overcome the deficiencies that were exposed in the recent ASIC survey of financial planners," Senator Campbell said.
"It is imperative that an industry which is the custodian of billions of dollars of people's savings for their retirement operates in the most professional and transparent way and has the community's confidence.
"The Government has invested an extra $90 million to ensure ASIC has the firepower to police the new legislation. The industry is also investing many millions of dollars in additional training to bring their personnel up to the high standards required by the new law."
Senator Campbell urged firms to lodge their applications with ASIC as soon as possible to avoid getting caught in a last-minute jam. Applicants could find all details at www.asic.gov.au/fs or call 1300 300 630.
PERTH
10 March 2003
Contact: Wayne Grant 08 9421 1755 or 0407 845280